Car depreciation rates evaluated

Some of the best bargains for used car buyers are those in the luxury vehicle segment, according to research.

While three-year-old second-hand car depreciates in value by £3.10 per day, a new vehicle purchase will reduce by an average of £38 a day, used car retailer Carsite.co.uk said.

Audi A8 4.2 TDI Quattro SE has an anticipated depreciation rate of more than half its value at £185 a day for the first six months, the retailer said. As such it could make a good bargain for used car buyers, who want to avoid the burden of depreciation and avoid having to use theirbreakdown cover.

By contrast, the 4x4 sector shows more stable demand and "slower depreciation" with off-road vehicles such as the Land Rover Discovery and Honda CRV "expected to retain 80 per cent of their value", it added.

John Guess, of Carsite.co.uk, said: "Showroom tax, VAT, VED, high fuel prices, soaring insurance premiums, parking permits - today's motorist faces a whole catalogue of costs before they can get behind the wheel of a new car.

"Then as soon as they pull off the forecourt, their vehicle is shedding value to depreciation - the biggest running cost of them all. We've found many buyers are choosing to invest in 2-4 year-old used models and letting others shoulder the financial impact of depreciation."

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